Rota, Tinian gas as high as $6.70 a gallon

Rota and Tinian gas prices are now as high as $5.75 a gallon for regular unleaded and $6.70 a gallon for diesel fuel following a 10-cent increase over the weekend. These pump prices are the highest in the entire United States and its territories.

Saipan’s pump prices are currently at $4.809 to $5.319 a gallon.

Shell Marianas increased its Saipan pump prices by 10 cents a gallon on Saturday, mirroring Mobil Oil Mariana Islands’ price hikes on Thursday amid soaring crude oil prices, seasonal demand, rising tensions with Iran, and China’s increasing demand for oil, among other things.

The CNMI’s isolated location and the high cost of transporting products, especially to Rota and Tinian, all add up to much higher prices on these two islands compared to the capital island of Saipan and the rest of the United States.

Average pump price in the U.S. hovers around $3.391 a gallon, based on data from the American Automobile Association Inc. as of Jan. 14.

Among U.S. states, Hawaii has the highest pump price for regular gas at $4.058 a gallon, followed by Alaska with $3.898 a gallon, AAA data shows. Utah and Wyoming, meanwhile, have the lowest pump prices at $2.918 and $2.992 a gallon, respectively.

On Rota, regular unleaded gasoline is now $5.75 a gallon and diesel fuel is now $6.70 a gallon, based on the prices at the Sasanhaya Service Station. Its competition, Luta Gas, also sells regular gas for $5.75, but does not carry diesel.

A 44-year-old motorist on Rota said yesterday that the latest gas price increase is an added financial burden, especially because he’s earning only the CNMI’s minimum wage of $5.05 an hour.

“For gas alone, I spend about $100 a month and my driving is mostly from home to work and vice versa. I limit my driving because I’m trying to save on gas. It’s too costly on Rota. We also do carpooling. I don’t even use air-conditioner at home anymore to save money,” the Songsong resident told Saipan Tribune.

On Tinian, regular unleaded gasoline is now $5.759 a gallon and diesel is now $6.349 a gallon at Tinian Fuel Services Inc.

Its competition, SN Five, has yet to change its prices so its regular unleaded gasoline remains at $5.609 a gallon, a gas attendant said yesterday afternoon. The employee said once they receive the next fuel shipment bought at a higher price, they will also increase their prices.

A restaurant employee on Tinian said yesterday that while she earns $5.10 an hour, which is only 5 cents more than the minimum wage, the latest 10-cent increase in prices will make it even “harder to budget.”

The 30-year-old mother of three said their work hours have been cut by four hours, from the regular 80 to 76 hours biweekly.

“On Tinian, almost everything has a high price, especially gas. It is difficult to budget when everything you buy goes up and your work pay goes down. So I have to work at least more than an hour to be able to afford one gallon of regular gas, which is now $5.75 per gallon,” the Marpo resident said in a phone interview.

Prices of gasoline are determined by a number of factors, including changes in the world market wholesale prices of gasoline, regional gasoline supply and demand balance, transportation costs, insurance, local distribution, marketing costs, government regulations, taxes, competitive market forces, and investments in retail stations and distribution terminals.